- an initial £100 fixed penalty, which applies even if there is no tax to pay, or if the tax due is paid on time;
- after 3 months, additional daily penalties of £10 per day, up to a maximum of £900;
- after 6 months, a further penalty of 5% of the tax due or £300, whichever is greater; and
- after 12 months, another 5% or £300 charge, whichever is greater.
- There are also additional penalties for paying late of 5% of the tax unpaid at 30 days, 6 months and 12 months.
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With the excitement of Christmas and New Year’s Eve behind us, most of us are looking forward to the year ahead, full of plans and optimism. January often feels like a month dedicated to fresh starts, but before beginning a new year of business we need to wrap up last year’s tax returns and meet January’s pressing deadlines. For many of those in the tax profession, the new year signifies an alarming reality…. that the 31st January deadline is closer than they probably would feel comfortable with. It is the time of year where stepping outside in the daylight becomes a rarity as clients need to be chased more and more often with longer hours worked to ensure that clients returns are prepared and filed before 31 January 2020. Based on last year’s numbers and figures, there were a total of over 11.5 million self assessment tax returns that needed to be filed and record breaking 93.68% of these were filed on time (that is a total of 10,833,177 being filed by 11:59pm on 31 January 2019]). Although that sounds great, it still means that a total of 731,186 missed the deadline. Why do we mention this… well quite simply because if you file a return late, then HMRC will immediately issue late filing penalties with their penalty regime as follows:
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